"I recognise the important contribution that pubs make to their local communities, and I welcome the Government's efforts to support this through the taxation system.

The Chancellor said in the 2017 Spring Budget that tax on beer, cider and spirits will only increase by RPI inflation this year, in line with previous forecasts. This follows the removal of the beer duty escalator in 2013 and the unprecedented freeze in beer duty.

A £1,000 discount on business rate bills will be applied in 2017 for all pubs with a rateable value lower than £100,000. This applies to 90 per cent of pubs and is in recognition of the valuable role they play in our communities. The Chancellor has also announced a £300 million fund for local authorities to deliver discretionary business rate relief for individual cases in their local areas.

I am pleased to inform you that the Government, following a consultation, have decided that from 2020 business rates will be indexed around CPI. This is a change from the currently used RPI measure, and will represent a tax cut for all business each year from 2020.

The Chancellor continues to keep all taxes under review and decisions on tax policy are made as part of the Budget process."

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